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V0353-22 24 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Services provided by a partner to a company may be considered economic activity income under certain conditions

The DGT responds that services rendered by an insurance agent to a limited company may be considered economic activity income if both the company's and the partner's activities fall within Section Two of the Income Tax Act and the partner is registered under the self-employed or mutualism regime.

The question raised

A consultation is made regarding the taxation applicable to the taxpayer under Personal Income Tax for the services rendered to the company.

The DGT's ruling

For the services provided by a partner to their company to be considered income from economic activity, the activity must be included in the Second Section of the IAE (Tax on Economic Activities) Schedules for both the partner and the company. Furthermore, the partner must be registered in the special Social Security regime for self-employed workers or in an alternative mutual insurance society. In the case of an insurance agency, the activity requirement is met if the partner materially performs the professional tasks on behalf of the company. If these requirements are not met, the remuneration shall be considered income from employment.

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